David Lomoro September 1, 2017 As mentioned above, the CAC metric is important to two parties: companies and investors. The first party includes outside, early stage investors who use it to analyze the scalability of new Internet technology companies. They can determine a company’s profitability by looking at the difference between how much money can be extracted from customers and the costs of extracting it.
March 29, 2018 The idea behind negative keyword evaluation is to make sure that your ads aren’t targeting users who you know aren’t relevant to your business’ offerings.
Founder of OptimizeSmart.com and EventEducation.com Remember, your CPA is a percentage of your CLV. It’s how much CLV you’re willing to give up in order to bring in new customers. Giving up less means higher profit, but lower growth. Why? Because the well of customers who you can bring onboard for very little money runs dry quickly.
CPA = Cost Conversion Economics – Finding Your Customer Acquisition Sweet Spot In order to determine how much money you actually have available for marketing, and from there your CPA, the first thing you need to calculate is the lifetime value of your average customer (CLV). That CLV will then be used to set your marketing budget.
http://youtube.com/watch?v=io-hpvGJuP8